Samsung abandons its plans for an OLED TV manufacturing facility in Korea due to the cost of creating the panels and stiff price competition.

A few days ago, the Nikkei Asian Review reported that Samsung has ditched its plans for a new OLED manufacturing facility that was supposed to be erected by the end of 2014. a light-emitting diode containing thin flexible sheets of an organic electroluminescent material, used for visual displays.

Inefficiency in producing the TVs and the fact that the company’s OLED TVs didn’t do well last year due to stiff price competition (the 55-inch version was $14,700) are to blame. Additionally, the market for OLED TVs appears to be smaller than expected: According to DisplaySearch, the OLED TV market comprised only 4,400 units in 2013. Staff writer Kentaro Ogura reported:

The inefficiency of manufacturing the panels, which account for the bulk of TV production costs, was the major culprit. The company was hard-pressed to raise efficiency and faced price competition in the TV market.

Samsung will focus on high-quality LCD TVs for the time being. It will continue research on OLED technologies but will likely not release any new OLED sets for a while. Instead, the company is thinking about setting up a new facility to make small and midsize OLED panels for such devices as smartphones.

What does this mean to you? It means that OLED adoption in TVs will probably be slower than expected, and don’t look for new Samsung OLED TVs anytime soon. Instead, Ogura reports, the company will continue to focus on OLED for smartphones and smaller devices.

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